The present invention relates to a new and distinct variety of evergreen perennial Dianella revoluta, which has been named ‘DTN03’. It is anticipated that the plant of this invention will be marketed under the tradename Baby Bliss. Dianella are a genus of ornamental grass-like plants in the Phormiaceae family. In general, Dianella revoluta has flax-like leaves with curved edges. Pale blue flowers on stems up to 50 cm high typically develop in spring and early summer and are followed by green berries.    Lineage: The cultivar ‘DTN03’ was discovered in 1996 in Clarendon, New South Wales, Australia, during a seedling selection of cultivated Dianella revoluta ‘DR4000’ (unpatented). The parent ‘DR4000’ is characterized by a wide leaf with medium glaucosity, tall plant height, and medium plant density. Selection criteria for ‘DTN03’ were bluish-green leaf color, strong leaf glaucosity, and short plant height with a dense compact habit.    Asexual reproduction: The new variety ‘DTN03’ was first asexually propagated by vegetative division in the state of New South Wales, Australia in September 1998 and has been asexually propagated since that time by division and micropropagation. The distinctive characteristics of ‘DTN03’ have remained stable and true to type through successive cycles of asexual propagation.